Mizuho: If Ueda and Otokonohanasaki ignore the recent weakness of the yen, more yen selling pressure may emerge.

According to a report by Masafumi Yamamoto and Masayoshi Mihara, strategists at Mizuho Securities, if Haruhiko Kuroda, the Governor of the Bank of Japan, maintains a dovish stance in his speech today and ignores the recent depreciation of the yen, investors may have more confidence in selling the yen. If Kuroda only focuses on the impact of the yen on the annual inflation rate, the view that the monetary policy stance of the Bank of Japan is not affected by the exchange rate may be further strengthened. The recent tone of verbal intervention by the Japanese Ministry of Finance indicates that there is no urgent need for actual intervention. Note: Kuroda is expected to speak this afternoon at the Japan Business Federation.